Trending Talk: Radio's Road Ahead
Welcome to Trending Talk, where we ask leaders in the audio industry to share their wisdom and break down the trends advertisers need to know the most.
Between the podcast frenzy, the growing demand for screen-free content, and now, radio’s reach at its highest since before lockdowns went into effect last year, an audio marketing strategy has become a need-to-have for every advertiser.
What’s next for radio listening and its continued role as a legacy media channel? We asked someone who knows a thing or two about radio’s audience - Brad Kelly, Managing Director of Nielsen Audio.
Named one of the 40 most powerful people in radio by Radio Ink for 5 consecutive years, Brad’s knowledge of and contributions to radio have made a lasting impact on the industry.
Let’s dive into the discussion on where radio listening is now, preparing for the future, and how to get the most out of radio advertising.
AdLarge Media: COVID undoubtedly had an impact on the radio industry, but let’s talk recovery. How is radio rebounding as we start to emerge from the pandemic?
Brad Kelly: Vaccines have helped to ease the pandemic and states have started to loosen restrictions. This has helped boost total radio listening for persons 12+ in May to the highest levels since the pandemic began. Total Radio’s average audience was 20% higher this May than the same month last year.
ALM: What can we take away from the past year, and how will it inform the future of radio?
BK: Radio was remarkably resilient in the face of the pandemic despite strong headwinds. Radio thrives when people tune in while in their vehicles as they go to work and shop. During the peak of the lockdown there were fewer people on the road and consequently fewer people listening to broadcast radio. Throughout this time there was a rise in those who tune to radio station streams as consumers found other ways to connect with their favorite content. As restrictions eased, consumers resumed their shopping habits and work commutes, and broadcast radio listening rebounded. The pandemic appears to have accelerated consumer use of digital audio and we can expect to see radio broadcasters lean further into streaming and podcasting as a result.
ALM: Another challenge for the medium moving forward is attracting younger/new listeners despite the wealth of media options out there. Where does radio have an advantage?
BK: Radio has two primary advantages when it comes to younger listeners. The first is the medium’s strength in-car. AM/FM radio remains dominant in-car. However, the industry needs to do everything possible to protect this valuable “real estate.” The second advantage is radio’s content. When I say content, I don’t mean music, however. There are tons of choices for young people when it comes to getting and discovering the music they like. Radio’s advantage is the connection we have with the audience on a local level and our “stationality” which is the unique personality, connection and sound of the station. Music services are good for what they are, which are big jukeboxes. But they sound sterile. The best radio stations sound like home and they are woven into the fabric of their local community.
ALM: What is your advice to new advertisers who haven't bought radio before? What would you say to legacy advertisers who have been holding out this past year?
BK: In today’s world it is nearly impossible to deliver results based solely on one medium due to the fact that reach levels flatten out very quickly when you’re using only one medium. For example, if an advertiser is using only digital or TV they will not be able to reach that many more people by buying yet more digital or TV. However, when you add radio to a digital or TV-only campaign you’re going to reach a new desirable group of people. Our state-of-the-art cross-platform planning tool, Nielsen Media Impact, demonstrates this story and it holds true in nearly all cases. Bottom line, it uses a combination of different media (including radio) to maximize your reach. Radio amplifies both TV and digital.
ALM: Radio is a complementary media channel in many ways. What are advertisers missing out on if they are not including radio in their cross-media plans?
BK: See above! Radio reaches both younger TV viewers and light TV users. For that reason, radio adds new consumers to your campaign’s reach which helps boost your campaign’s ROAS (Return on Ad Spend). The same goes for digital. Boosting ad spend on digital-only campaigns increases frequency but it takes the chance of bothering the consumer through too much repetition. Radio adds new people and boosts reach because it reaches more consumers than any other platform. While all advertising mediums are valuable, adding radio into the media mix can amplify and complement TV and digital advertising.